This post first distils the core requirements of Circular 792 quater, covering identification and verification for natural persons, legal persons and legal arrangements, followed by briefly highlighting key points from the AED’s January 2026 Newsletter for RAIFs and AIFs.

Circular 792 quater: Identification and verification duties

The Circular No. 792 quater restates and refines professionals’ obligations under the AML/CFT Law of 12 November 2004 to identify and verify clients’ identities on the basis of reliable and independent documents, data or information, including recognised electronic means where applicable. It expressly applies to professionals under AED supervision and clarifies that, for investment funds, the concept of “client” includes the investor registered in the fund’s register. It replaces Circular 792 ter of 28 July 2025.

For natural persons, identification and verification must be performed using valid official identification documents (e.g., ID card, passport) bearing a signature and a photograph and must be understandable to both the professional and the supervisory authority. Where a foreign ID is used, the identifying particulars must also be available in a language that ensures comprehension by the professional; upon request, a translation into an official language of Luxembourg or English must be provided within two weeks of notification.

For legal persons or legal arrangements, professionals must collect and retain copies (paper or electronic) of core corporate and governance information, applying a risk‑based approach to determine the nature and extent of documents. The Circular lists, among others:

• name
• official registration number (where applicable)
• legal form
• registered office and principal place of business
• identification of directors or equivalent persons interacting in the business relationship
• provisions governing authority to bind
• latest coordinated or up‑to‑date statutes or constitutive documents
• recent and up‑to‑date company register extract or equivalent proof and
• an ownership structure chart

Identification must take place before establishing a business relationship.

The Circular underscores ongoing due diligence throughout the relationship, whether onboarding occurs face‑to‑face or remotely, with the professional bearing the burden of proof for compliance. Identification mechanisms and the extent of verification must be proportionate and justified by the prior risk analysis. The Circular differentiates verification by the professional from “authentication” by a competent and independent authority, which may arise in enhanced due diligence scenarios.

AED Newsletter (January 2026): supervision scope, 2024 reporting quality, and 2026 logistics

The January 2026 AED Newsletter provides a supervisory snapshot, noting that approximately 3,200 RAIFs fall within AED’s AML/CFT scope and that more than 8,000 AIFs are likely to fall under the same perimeter; draft guidance to clarify the AIF definition is being prepared with sector associations.

For 2024 reporting, AED observed delays and significant quality concerns. Around 91 per cent of questionnaires were submitted, yet about 90 per cent were rejected, predominantly due to errors in Section 1 – Identification; the AED warns that incomplete or inaccurate questionnaires will be treated as null and void.

For RC reports, 88 per cent were submitted, with 68 per cent rejected; recurring deficiencies include missing signatures, incorrect or missing RCS numbers, and non‑compliant file naming.

AED reiterates the statutory duty to cooperate under Article 5 of the AML/CFT Law, requiring timely transmission of questionnaires, RC reports and legal documents, provision of accurate and up‑to‑date information, prompt notification of changes (e.g., liquidation; changes to RC/RR or their details; changes to legal name), and retention/availability of documents for on‑desk or on‑site inspections.

Looking ahead to 2026 logistics, AED requires each AML/CFT questionnaire to be submitted via a separate email with no other attachments. RAIF invitation letters will be dispatched in February, and AIF questionnaires/reports must be submitted only on AED invitation, with professionals advised to monitor the AED website.

Conclusion

In light of Circular 792 quater, professionals should ensure that client identification and verification across natural and legal persons-are conducted pre-onboarding, documented, intelligible, and risk-appropriate, with ongoing vigilance and the ability to evidence compliance.

The Circular can be found here and the newsletter here.